Simple question about total cost function: When the cost function of a firm is c(Q) = 100 + q2, and you have two plants,
Posted: Thu May 05, 2022 6:34 am
Simple question about total cost function:
When the cost function of a firm is c(Q) = 100 +
q2, and you have two plants, Q (one firm total
output) = q1 + q2 (the output of identical two plants),
Which is the right way to calculate total cost
function, c(Q) = {100+(q1)2}
+ {100+(q2)2} or c(Q) = 100 +
(q1+q2)2 ?
When the cost function of a firm is c(Q) = 100 +
q2, and you have two plants, Q (one firm total
output) = q1 + q2 (the output of identical two plants),
Which is the right way to calculate total cost
function, c(Q) = {100+(q1)2}
+ {100+(q2)2} or c(Q) = 100 +
(q1+q2)2 ?